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Brief 74/09 deals with transition period
Changes to the tour operators’ margin scheme (TOMS) due to take effect from 1 January 2010 were outlined in Revenue & Customs Brief 27/09.
Revenue & Customs Brief 74/09 has been published to deal with the transition period of how a business introduces the changes announced in the earlier RCB27 issued back in April.
The latter changes withdraw certain accounting arrangements that were previously allowed by HMRC but are not permitted within EU law.
For example, EU law states that TOMS only relates to sales to the ‘traveller’ and not to sales to other businesses reselling holiday packages.
HMRC had previously allowed TOMS accounting for such sales. All of the changes announced in RCB27 are necessary to ensure compliance with EU law.
